Caleb earned an interest of $27.50 on $500 for 1 year at a rate of 5.5% per year.
Step-by-step explanation:
The interest earned by Caleb on $500 for 1 year at a rate of 5.5% per year can be calculated using the simple interest formula:
I = P * r * t
where I is the interest earned, P is the principal (starting amount), r is the annual interest rate as a decimal, and t is the time period in years.
Plugging in the given values, we get:
I = 500 * 0.055 * 1
I = 27.50
Therefore, Caleb earned an interest of $27.50 on $500 for 1 year at a rate of 5.5% per year.